It looks like the Dow Jones Industrial Average (DJINDICES: ^DJI ) is set to break its run of triple-digit movements -- and take away investors' streak of gains for the week, as well. The blue chip index has turned down by around 25 points as of 2:15 p.m. EDT, with most stocks in the red -- although few Dow members have made big movements on this Friday. It's a nice breather for investors after the volatility of the past few weeks, but expect more of that to come as questions surrounding quantitative easing's inevitable tapering heat up.
The future of stimulus isn't something long-term investors need to worry about, but keeping an eye on stocks is key to maintaining the best portfolio you can. Who's making waves today? Let's catch up on the stories -- and movers -- you need to know about.
Signs of strength from consumers
Housing, and rising consumer sentiment, have dominated talk around the economic recovery this year, and the University of Michigan/Thomson Reuters consumer confidence�report for May showed a better-than-expected reading of 84.1 for the month, down only slightly from April's score. That combination of economic strength has done wonders for Home Depot (NYSE: HD ) , today's Dow leader with shares up 1.8%. Home Depot's pulled ahead�of rival Lowe's (NYSE: LOW ) , particularly after last quarter's earnings report, where the former�raised its guidance, but the latter missed projections. That separation for leadership in the industry has Home Depot poised to continue soaring as the economy's rebound picks up.
Top 10 Blue Chip Stocks For 2014: Colgate-Palmolive Company(CL)
Colgate-Palmolive Company, together with its subsidiaries, manufactures and markets consumer products worldwide. It offers oral care products, including toothpaste, toothbrushes, and mouth rinses, as well as dental floss and pharmaceutical products for dentists and other oral health professionals; personal care products, such as liquid hand soap, shower gels, bar soaps, deodorants, antiperspirants, shampoos, and conditioners; and home care products comprising laundry and dishwashing detergents, fabric conditioners, household cleaners, bleaches, dishwashing liquids, and oil soaps. The company offers its oral, personal, and home care products under the Colgate Total, Colgate Max Fresh, Colgate 360 Advisors' Opinion:
- [By Ong Kang Wei]
Another example of such a product is Colgate-Palmolive (CL)'s Colgate toothpaste. I do not think I have to elaborate much here. Toothpaste is needed in our everyday life, and we will definitely have to buy more toothpaste after we have finished using a packet of it, ensuring that Colgate gets more and more sales over the years.
- [By Dividends4Life]
Memberships and Peers: KMB is a member of the S&P 500, a Dividend Aristocrat, a member of the Broad Dividend Achievers��Index and a Dividend Champion. The company's peer group includes: The company's peer group includes: Procter & Gamble Co. (PG) with a 3.1% yield, Colgate-Palmolive Co. (CL) with a 2.3% yield, and Clorox Corporation (CLX) with a 3.4% yield.
- [By Dan Caplinger]
One concern, though, is how the company handled news of Venezuela's currency devaluation. Clorox (NYSE: CLX ) and Colgate-Palmolive (NYSE: CL ) also felt the pinch, with Clorox taking about a $0.05 to $0.10 per-share earnings hit and Colgate losing about $0.50 per share. But they also addressed the potential devaluation more proactively than P&G did. Clorox actually�anticipated�the devaluation in its February earnings report, projecting the potential hit if a devaluation took place. Colgate didn't provide specific guidance in advance but clearly saw it as an issue, delivering on a promise to give prompt guidance revisions after the devaluation occurred.
Top 10 Blue Chip Stocks For 2014: Visa Inc.(V)
Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. The company owns and operates VisaNet, a global processing platform that provides transaction processing services. It also offers a range of payments platforms, which enable credit, charge, deferred debit, debit, and prepaid payments, as well as cash access for consumers, businesses, and government entities. The company provides its payment platforms under the Visa, Visa Electron, PLUS, and Interlink brand names. In addition, it offers value-added services, including risk management, issuer processing, loyalty, dispute management, value-added information, and CyberSource-branded services. The company is headquartered in San Francisco, California.
Advisors' Opinion:- [By Motley Fool Staff]
Remer: Oh, huge opportunity to change. But it will take time. You asked about MasterCard. It will take time to potentially replace the ecosystems that exist and how are those leading organizations -- the MasterCards, the Visas (NYSE: V ) , the American Express (NYSE: AXP ) , the PayPals -- going to come down to the next generation and give them the reason why they should utilize that same payment system.
- [By Infinity Group]
This year saw Facebook partnering with HTC to provide a Facebook branded mobile phone called First. The phone never gained much traction, and it became clear that Facebook was testing the market. I do not believe that Facebook would be interested in BlackBerry's handset business, but may consider it if the price is right. It is foreseeable that Facebook could utilize the BBM integration with the handset, and the infrastructure to build out Facebook's data centers. The build out would allow for tighter integration in Asian markets, where historically BlackBerry has been strong. BlackBerry has also been experimenting with other technology such as mobile payments with Visa (V). In an ever changing environment, Facebook could find a competitive advantage with some of BlackBerry's technology.
- [By Sean Williams]
The biggest concern for the two largest credit card processing companies -- MasterCard and Visa (NYSE: V ) �-- is whether or not consumer spending is growing or slowing. If global dollars transacted and volumes are falling, that would mean less processing revenue for these giants. However, I can't actually recall the last time we saw a steady decline in credit card usage since the deep recession of 2009.
- [By David Hanson]
In the following video, Motley Fool financial analyst David Hanson takes a question from a Fool reader, who writes, "Bought Visa (NYSE: V ) on a 'Hold' report at $178.54. Wish I would have picked it up when in the $140-$145 range. What is your opinion going forward on this stock?"
Hot Dividend Companies To Buy Right Now: International Business Machines Corporation(IBM)
International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology-based support services. The company?s Global Business Services segment offers consulting and systems integration, and application management services. Its Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management, and predictive analytics; Tivoli software for identity management, data security, storage management, and datacenter automation; Lotus software for collaboration, messaging, and so cial networking; rational software to support software development for IT and embedded systems; business intelligence software, which provides querying and forecasting tools; SPSS predictive analytics software to predict outcomes and act on that insight; and operating systems software. Its Systems and Technology segment provides computing and storage solutions, including servers, disk and tape storage systems and software, point-of-sale retail systems, and microelectronics. The company?s Global Financing segment provides lease and loan financing to end users and internal clients; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services. It serves financial services, public, industrial, distribution, communications, and general business sectors. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. IBM was founded in 1910 and is based in Armonk, New York.
Advisors' Opinion:- [By Alex Planes]
On April 29, 1952, IBM (NYSE: IBM ) IBM president (and soon-to-be CEO) Thomas J. Watson, Jr. announced to the public that IBM would soon introduce "the most advanced, most flexible high-speed computer in the world." It was called the Defense Calculator while in development, but IBM later rechristened it the 701 Electronic Data Processing Machine -- the company's first commercially available scientific computer. It would be the symbolic bridge between two eras of IBM -- from punched-card tabulators to digital computers and from the leadership of the first Thomas J. Watson to the second.
- [By Dan Carroll]
Unfortunately, IBM (NYSE: IBM ) shares aren't having the same kind of good day. Big Blue's stock has fallen 2.1% to lead the Dow down. Blame competitor Accenture (NYSE: ACN ) for this one, as the company reduced its earnings�and revenue outlook for the year in a move that took the IT industry south. IBM's still on strong footing with its IT and cloud businesses, however, although Accenture's caution about a slowdown in the industry is worth watching for IBM shareholders.
- [By Dan Caplinger]
Hewlett-Packard (NYSE: HPQ ) will release its quarterly report on Tuesday, and investors have been increasingly nervous about the tech giant's ability to keep its long-term restructuring efforts moving forward. With rival IBM (NYSE: IBM ) having faced tough conditions in the IT market and with Accenture (NYSE: ACN ) squarely aimed at the same consulting customers that HP hopes to poach in its reorganization efforts, Hewlett-Packard faces pressure to start producing solid results from its strategic moves sooner rather than later.
Top 10 Blue Chip Stocks For 2014: Chevron Corporation(CVX)
Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment involves in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as holds interest in a gas-to-liquids project. The Downstream segment engages in the refining of crude oil into petroleum products; marketing of crude oil and refined products primarily under the Chevron, Texaco, and Caltex brand names; transportation of crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacture and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It a lso produces and markets coal and molybdenum; and holds interests in 13 power assets with a total operating capacity of approximately 3,100 megawatts, as well as involves in cash management and debt financing activities, insurance operations, real estate activities, energy services, and alternative fuels and technology business. Chevron Corporation has a joint venture agreement with China National Petroleum Corporation. The company was formerly known as ChevronTexaco Corp. and changed its name to Chevron Corporation in May 2005. Chevron Corporation was founded in 1879 and is based in San Ramon, California.
Advisors' Opinion:- [By Matt DiLallo]
One of the best assets that Buckeye has acquired recently is the Perth Amboy marine terminal in the New York Harbor, which it purchased from Chevron (NYSE: CVX ) for $260 million. In conjunction with the sale, Chevron entered into a multi-year storage and services agreement. Buckeye plans to spend more than $100 million to transform the terminal into one that can store multiple products as well as link it by pipeline to its nearby Linden complex and to upgrade it to handle Bakken-sourced crude oil coming in by rail and ship. This is an area where Buckeye really excels as it can take an underutilized asset from a large integrated company like Chevron and turn it into something of even greater value.�
- [By Claudia Assis]
Energy companies in the Gulf also shut down about 40% of natural gas production. Several energy firms, including BP PLC (BP) , Anadarko Petroleum Corp. (APC) , Royal Dutch Shell PLC (RDS.A) ,�Exxon Mobil Corp. (XOM) �and Chevron Corp. (CVX) , began evacuating workers earlier in the week.
Top 10 Blue Chip Stocks For 2014: Philip Morris International Inc(PM)
Philip Morris International Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. Its international product brand line comprises Marlboro, Merit, Parliament, Virginia Slims, L&M, Chesterfield, Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White. The company also offers its products under the A Mild, Dji Sam Soe, and A Hijau in Indonesia; Diana in Italy; Optima and Apollo-Soyuz in the Russian Federation; Morven Gold in Pakistan; Boston in Colombia; Belmont, Canadian Classics, and Number 7 in Canada; Best and Classic in Serbia; f6 in Germany; Delicados in Mexico; Assos in Greece; and Petra in the Czech Republic and Slovakia. It operates primarily in the European Union, Eastern Europe, the Middle East, Africa, Asia, Canada, and Latin America. The company is based in New York, New York.
Advisors' Opinion:- [By Jon C. Ogg]
Philip Morris International Inc. (NYSE: PM) has experienced more than impressive growth in both its share price and its profits in the past four years. Lately its gains have petered out. The problem is that much of that growth has come from a few countries in Asia, and if one analyst report is accurate, there will be little to no growth from those areas ahead. Nomura Securities is downgrading Philip Morris to a Reduce rating from Neutral, but for all practical purposes it is a Sell rating. The firm’s $76 price target suggests downside of more than $10 ahead.
- [By Efficient Alpha]
Philip Morris International (PM) is a favorite of mine, not only for its 4% dividend but also for its protection against global inflationary pressures. The company can pass through higher commodity prices and smokers will keep coming back for more. The company has 16% of the international market and is making strong progress in China. Asia accounts for 36% of sales, followed by the EMEA region (27%), the EU (26%) and Latin America/Canada (11%). Shares have posted an annual return of 15% since its spinoff in 2008.
- [By GuruFocus]
The decade low yield of tobacco stocks can be clearly seen from our new interactive charts, which are embedded below. The chart shows the dividend yield of three tobacco stocks: Reynolds American (RAI), Philip Morris International (PM) and British American Tobacco (BTI).
Top 10 Blue Chip Stocks For 2014: McDonald's Corporation(MCD)
McDonald?s Corporation, together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonald?s restaurants that offer various food items, soft drinks, coffee, and other beverages. As of December 31, 2009, the company operated 32,478 restaurants in 117 countries, of which 26,216 were operated by franchisees; and 6,262 were operated by the company. McDonald?s Corporation was founded in 1948 and is based in Oak Brook, Illinois.
Advisors' Opinion:- [By Matt Thalman]
Shares of McDonald's (NYSE: MCD ) are down 0.8% this afternoon on news that a Janney analyst has downgraded the stock. Mark Kalinowski reduced the stock's rating from "buy" to "neutral" and lowered his earnings-per-share estimate for the year by $0.03 to $5.68. While the lower EPS estimate doesn't matter that much -- it was a small move, and the average analyst polled by FactSet pegs full-year earnings at $5.69 -- investors are worried because Kalinowski believes this summer's U.S. sales may come in much lower than what investors are currently predicting. Kalinowski lowered his same-store sales numbers from 2% to 1.1% for June and from 2% to 1.5% for July.�
- [By Nicole Seghetti]
The study found that�McDonald's (NYSE: MCD ) is the single most frequented business in the U.S., despite the company's same-store sales declines since early last year. The fast-food giant is scaling back its bloated menu, which has expanded by 70% since 2007 to roughly 145 items. Menu bloat has led to slower operations, tarnishing customer service. The company has more singularly focused on the value-conscious consumer, but the drive toward this consumer has hurt McDonald's. The Golden Arches saw weak earnings growth in the most recent quarter, due to sacrificing profit margins by focusing on value menus to avoid losing customers.
Top 10 Blue Chip Stocks For 2014: Apple Inc.(AAPL)
Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals through its online and retail stores; and digital content and applications through the iTunes Store. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative markets. As of September 25, 2010, it had 317 retail stores, including 233 stores in the United States and 84 stores internationally. The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California.
Advisors' Opinion:- [By Andrew Tonner]
Whether or not tech giant�Apple (NASDAQ: AAPL ) remains a buy is one of the most constantly talked about issues for tech investors everywhere -- and for good reason. Although the company's certainly created plenty of fortunes with its historic rise, it's also proven quite disappointing over the last 12 months. It seem Apple's shares might have finally found a floor after it announced the astounding increase to its capital return program in late April. However, Fool contributor Andrew Tonner recently saw an analyst note detailing at least one more major move Apple could do this year to keep the gains coming. To find out more, watch the video below.
- [By Evan Niu, CFA]
Just after Apple (NASDAQ: AAPL ) got treated to the third degree for its tax practices stateside, the Mac maker may be about to get similarly scrutinized across the pond. According to Financial Times, European regulators are investigating Apple's sales practices in the region as potentially being anti-competitive.
- [By Daniel Sparks]
What's the better way? Find excellent companies available for reasonable prices and hold them for the long haul. Attempting to profit from volatility is a gambler's game. Just look at Apple (NASDAQ: AAPL ) over the past two years. Investors who attempted to buy Apple on its way down from $700 according to the "buy low, sell high" mantra have thus far been rewarded with further losses:
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